Massive commercial project nears in Lebanon County

Work on the first phase of the long-awaited North Cornwall Commons is expected to begin in May

Construction could begin as early as May on the first phase of North Cornwall Commons, the largest commercial development in Lebanon County history. The phase will begin at the northeast corner of Cornwall and Rocherty roads, shown beyond the traffic light. (LEBANON DAILY NEWS EARL BRIGHTBILL)

The first phase of construction on the largest commercial development in Lebanon County history could begin as early as May, one of the project's developers said Wednesday.

Speaking at the Lebanon Valley Chamber of Commerce's 2013 economic forecast breakfast at Hebron Banquet Hall, Donna Deerin Ward of LMS Commercial Real Estate said road and utility work should begin in May, and construction on the development, known as North Cornwall Commons, will begin immediately afterward.

"I would like to stick shovels in the ground very, very soon in North Cornwall Township," she said.

Plans for North Cornwall Commons include 160 townhomes, a hotel, two restaurants, offices and shops on 148 acres straddling the east and west sides of Cornwall Road to the north of Rocherty Road.

The project has been on the drawing board for years but only received approval for the beginning phases in November from the North Cornwall Township supervisors.

The first phase of construction - a hotel, two restaurants, three office buildings and 50 townhomes - will take place on the northeast corner of Cornwall and Rocherty roads, directly across Rocherty Road from the Lebanon Valley Expo Center.

"We are looking forward to getting our project off the ground," Deerin Ward said. "We're waiting for our (highway occupancy) permit, and as soon we get that, we have a lot of work to do. We have to extend sewer and water to the site. But once we get all that initial work under way, we'll be ready to start building some stores.

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Deerin Ward said three national chain restaurants have contacted LMS about being part of the project. She did not name any of them.

"They are waiting to see if a hotel operator steps up to be next door to them, and then they want to see what's coming on board with the retail development," she said.

There has been some interest in the hotel, too, Deerin Ward said.

"I think they're all waiting to see when we're going to start construction," she said.

The second phase of construction would include a 600,000-square-foot shopping center on the west side of Cornwall Road. The township supervisors have yet to approve the land-development plan for that portion of the project, so construction on phase two could be at least 18 months away, Deerin Ward said.

The delays that have stalled construction on North Cornwall Commons are not unique. Deerin Ward said real-estate developers across the country have experienced difficulty in the past five years, and financing has played a large role in that.

"While there's a lot of money out there that they'd love to give to people, the banks have been holding on to it for all but a few developers," she said.

Money isn't the issue in North Cornwall Township, Deerin Ward said.

"For us, the thing that has prevented us from getting started is the lack of retail tenants," she said. "Over the past several years, we've seen a lot of tenants that are downsizing."

But, she said, some retailers have signaled recently that they are ready to start expanding again. Among them are big-box retailers, such as Wal-Mart and Target, and mid-box retailers, such as Dick's Sporting Goods, Marshalls, and Bed, Bath and Beyond.

"Which is good for Lebanon County, because I think you realize you're missing a lot of those types of retailers here," she said.

Deerin Ward owns Lancaster-based LMS with her brother, Joe. The company partnered with Blackford Developers of Lancaster to form Springwood Development Partners.

Also speaking at Wednesday's breakfast were Matthew McCloskey of SEI Investments, Nick DiFrancesco of the Pennsylvania Association of Community Bankers, Janis Herschkowitz of PRL Inc. and Glenn Wenger of Wengers of Myerstown. McCloskey discussed the overall economy, DiFrancesco discussed banking and the financial sector, Herschkowitz discussed the manufacturing sector, and Wenger discussed the agricultural sector.